Pump major Kirloskar Brothers Ltd is eyeing acquisitions in the US, the UK and the Far East, according to its Vice-President and Sector Head, Mr Pradeep Chapalgaonkar.
The company has initiated talks with four-five foreign companies and is open to buying more than one within the current fiscal, he told presspersons here on Thursday on the sidelines of a conference.
Funds for acquisition
He, however, did not give details of the funds earmarked for the acquisitions, and only said that the funding might be from internal accruals (including Kirloskar Group) and by raising money through some instruments.
The Kirloskar Group has a cash surplus of Rs 700 crore and Kirloskar Brothers’ surplus is Rs 75-100 crore, he said.
“The acquisitions are expected to give us logistical advantages and also help us cater to untapped specialised product base,” he said, indicating that it might consider leading players having expertise in producing super critical boilers.
The company was also looking at setting up joint ventures in Thailand and West Asia next year for distribution and marketing of its products, he said. It recently formed such a joint venture company in Holland, Kirloskar Europe Ltd.
Kirloskar would put thrust on nuclear power and the overall power sector for its supplies in the coming days, Mr Chapalgaonkar said. “Power plants are expanding capacities and the nuclear power segment is also expected to receive a boost this year,” he said.
Kirloskar Brothers is looking to be one of the five largest global manufacturers of pumps, he said, pointing out that it was currently ranked 13th or 14th in terms of revenues. The company has targeted 30 per cent growth in turnover in 2009-10 over last year’s Rs 1,850 crore. Its exports were expected to grow 45 per cent over last year’s Rs 250 crore, he pointed out.
The total order book in 2009-10, he said, was expected to be around Rs 8,500 crore, of which Rs 500 crore would be overseas contracts. Last year, the order book stood at Rs 6,000 crore.
Source: The Hindu Businessline